SATS
EchoStar Corp
TMT
11/28/2016
Presented
| Date | 11/17/2016 |
| Price | $49.85 |
| Market Cap | $4.71B |
| Ent Value | $4.87B |
| P/E Ratio | 22.25x |
| Book Value | $41.39 |
| Div Yield | 0% |
| Shares O/S | 94.40M |
| Ave Daily Vol | 192,928 |
| Short Int | 1.17% |
Current
| Price | $25.79 |
| Market Cap | $7.01B |
| EchoStar Corp. is engaged in the design, development, and distribution of digital set-top boxes and related products for direct-to-home satellite service providers. The company operates through three segments: EchoStar Technologies, Hughes and EchoStar Satellite Services. The EchoStar Technologies segment designs, develops and distributes digital set-top boxes and related products and technology, for satellite TV service providers, telecommunication companies and international cable companies. It also provides digital broadcast operations, including satellite uplinking/downlinking, transmission services, signal processing, conditional access management and other services. The Hughes segment provides satellite broadband internet access to North American consumers and broadband network services and equipment to domestic and international enterprise markets. It also provides managed services to large enterprises and solutions to customers for mobile satellite systems. The EchoStar Satellite Services segment owns and leases in-orbit satellites and related FCC licenses to lease capacity on a full time and occasional use basis primarily to DISH Network, and secondarily to Dish Mexico, the Unites States government service providers, state agencies, Internet service providers, broadcast news organizations, programmers and private enterprise customers. EchoStar was founded by Charlie Ergen in October 2007 and is headquartered in Englewood, CO. |
Publicly traded companies mentioned herein: EchoStar Corp (SATS), ViaSat Inc (VSAT)
Highlights
The presenter is long shares of EchoStar (SATS), stating the company is undervalued due to a legacy business that is only a small part of the overall business at this point. In the presenter’s view, the stock is trading at a discounted multiple to peers due to low FCF and high capex and this legacy business, but thinks multiples will expand with upcoming launches (and improved visibility into future launches), better capital allocation/deployment, and potential spectrum upside. If the thesis plays out and SATS’s multiples expand to be closer to satellite peers, shares could appreciate to $65 - $70, from $50 today.
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